Banana Loca – Banana Corer & Filler
DEAL
EPISODE SUMMARY
🕓 Air Date: December 17, 2021
Asking For:
$250,000 for 25%
Investor:
Mark Cuban, Kevin O'Leary (50/50)
Deal:
$250,000 for 25% + $3/unit royalty until investment is paid back
PRODUCT SUMMARY
Banana Loca offers a kitchen gadget that allows you to core and stuff a banana while still in its peel, making it easy to create delicious and mess-free snacks.
WATCH HERE
IN A RUSH?
Click these to jump to the section you want to read.
Background Story
Renee Heath and Bechara Jaoudeh, the brains behind Banana Loca, share a deep passion for the delectable combination of bananas and chocolate hazelnut spread. These two snack enthusiasts found themselves consistently drawn to this delightful flavor pairing, but there was a persistent problem that bothered them – the mess that often accompanied their favorite treat.
Anyone who has attempted to slice a slippery banana and then add peanut butter or chocolate spread knows the frustration involved. This impractical process led to sticky fingers and a less-than-optimal snacking experience. Determined to transform this culinary nuisance into a convenient delight, Renee and Bechara embarked on a journey to create a solution. The result of their innovation is Banana Loca, a kitchen gadget designed to revolutionize the way people enjoy their banana-based snacks.
Their idea was simple yet ingenious: a tool that allows you to core and stuff a banana while it remains snugly nestled in its peel. With this gadget, they aimed to bring ease and cleanliness to the process, making it enjoyable for the whole family. The founders’ dedication to making snacking more enjoyable and less messy ultimately led to the creation of Banana Loca, which would soon capture the attention of the Sharks on “Shark Tank.”
The Product
Banana Loca’s product is a game-changer in the world of snack preparation. The key to its innovation lies in its simple yet highly effective design, which makes it easy for users to enjoy delicious banana-based treats with minimal mess and maximum convenience.
The Banana Loca gadget allows users to core a banana while it’s still enclosed in its peel. This is achieved by inserting the banana into the straightener and twisting the corer inside, effectively removing the core while maintaining the banana’s structural integrity. A clever suction mechanism ensures that the core stays inside the corer until you’re ready to dispose of it. Users can then fill the cored banana with their choice of ingredients, turning it into a canvas for creative culinary exploration.
The uses of the Banana Loca gadget are versatile and limited only by one’s imagination. It simplifies the preparation of classic banana and chocolate hazelnut spread snacks and opens the door to a wide array of creations, including filled doughnuts, churros, hot dogs, and much more.
The primary benefit of the Banana Loca gadget is its ability to make snacking convenient and mess-free. It eliminates the hassle of slicing slippery bananas and trying to spread ingredients on them, making it a perfect tool for families and individuals seeking a cleaner and more enjoyable snacking experience.
How It Went
The company’s position before Shark Tank
Banana Loca’s performance in the marketplace has been nothing short of impressive, particularly considering its limited marketing efforts. Despite its relatively short existence, the company has garnered substantial success, primarily through online sales. The company’s product, the Banana Loca gadget, has resonated with consumers seeking a more convenient way to enjoy their favorite banana-based snacks. The fact that it has achieved $134,000 in sales within just five months is a testament to the gadget’s popularity and the founders’ ability to tap into a niche market segment.
The cost of producing each unit at $6, contrasted with the retail price of $26.99, signifies robust profit margins. This demonstrates that Banana Loca has found an effective balance between production costs and consumer pricing. Moreover, the founders’ proactive approach is evident in their investment of $224,000 in creating molds and initiating production. This financial commitment underscores their dedication to refining and manufacturing their product, positioning them for further growth.
Looking ahead, Banana Loca’s planned use of the $250,000 investment for inventory and paid marketing is a strategic move to expand its market reach. This allocation of funds reflects a proactive and forward-thinking approach that should help them capture an even larger share of the market, especially considering the enthusiasm shown by Sharks Mark Cuban and Kevin O’Leary during the “Shark Tank” negotiation. In conclusion, Banana Loca’s success story is marked by early achievements, solid profit margins, and an ambitious roadmap for growth.
The Negotiations:
The negotiation process for Banana Loca on “Shark Tank” was a pivotal moment in the company’s journey. The founders, Renee Heath and Bechara Jaoudeh, initially sought a $250,000 investment in exchange for 25% equity in their business. Here’s how the negotiation unfolded: Mark Cuban and Kevin O’Leary were quick to express their enthusiasm for the product. They recognized the gadget’s potential and the power of its visual demonstration in driving online sales. They offered the $250,000 investment but proposed a unique deal – a $3 royalty on each unit sold until they recouped $350,000, in addition to 25% equity. This proposal demonstrated their confidence in the product’s potential to go viral and their belief in its success.
Renee and Bechara were initially hesitant about the royalty proposal, wanting to maintain full ownership of their company. However, as the negotiation progressed, they realized the value that the Sharks could bring to their business, not just in terms of investment but also in terms of leveraging their social media reach. While the founders initially inquired about a $2 royalty rate, they ultimately accepted Mark Cuban and Kevin O’Leary’s offer of a $3 royalty. This marked a turning point in the negotiation, and it was a pragmatic decision that allowed them to secure the expertise and backing of the Sharks.
The negotiation culminated in a deal that was not just about capital but also the promise of powerful social media exposure. The founders’ willingness to adapt to the circumstances and consider the long-term potential of their partnership with the Sharks demonstrates their commitment to the success of Banana Loca. This deal signified a significant step forward for the company, ensuring that it would continue to make waves in the snacking industry with the backing of two experienced and influential investors.
